1. Providing Clients Flexibility and Cash Value
Using Trust and Product Design
For Producer or Broker Dealer Use Only. Not for Public Distribution.

2. Agenda Taxes Traditionally Safe Asset Classes Insurance as an Asset
Flexible Trust Design
Product Choice
Alternative Investments
For Producer or Broker Dealer Use Only. Not for Public Distribution.

3. Income & Wealth Transfer Taxes
The current $5,000,000 (indexed for inflation to $5,250,000 for 2013) applicable exclusion amount was set to return to the pre-2001 level of $1,000,000. ATRA makes the $5,000,000 (indexed for inflation) applicable exclusion amount permanent.
The applicable exclusion amount applies for gift, estate, and generation skipping transfer tax purposes. Therefore, the exclusion remains unified and can be used while alive or at death. This can create significant wealth transfer opportunities for very high net worth clients. While a return to a $1,000,000 exclusion amount would have created potential estate tax issues for a much larger segment of the population, at the now permanent $5,000,000 level, 98% or more of the population will be excluded from the estate tax according to Internal Revenue Service calculations.
Transfer Tax Rate
ATRA increased the estate, gift, and generation skipping transfer tax rate from 35% to 40% for 2013 and later years. This 5% increase is significantly lower than the scheduled rate increase to the pre-2001 level of 55%.
Spousal Portability
The spousal portability provisions of TRA 2010 have been made permanent by ATRA. Spousal portability allows a surviving spouse to use his/her deceased spouse’s unused applicable exclusion. This provision can be beneficial in situations where a deceased spouse’s exclusion amount may have been wasted due to no or improper estate planning. While portability may be beneficial in many circumstances, clients may still be better served by using traditional credit shelter trust planning at the first spouse’s death.
For Producer or Broker Dealer Use Only. Not for Public Distribution.

4. Cash Concerns
For Producer or Broker Dealer Use Only. Not for Public Distribution.

5. Fixed Income Yield and Returns
For Producer or Broker Dealer Use Only. Not for Public Distribution.
4/14/2017 7:18 PM

6. Life Insurance as an Asset
Tax-Free Death Benefit
Primary purpose of life insurance
Income and estate tax-free
Tax-Deferred Growth
Potential for Tax-Free Distributions
Policy loans and withdrawals
Flexible Asset
No contribution limits based on income
Distributions prior to age 59 ½
Cash value life insurance offers the advantage of a tax-free death benefit and the potential for income tax-free withdrawals and policy loans provided the policy is properly structured and remains in force.1
So let’s talk about changing the perception that life insurance is just another necessary expense and talk about cash value life insurance as an asset.
First, let’s not forget the primary reason for purchasing a life insurance policy – the death benefit. The premiums paid provide immediate funds if a client were to pass away prematurely. And, the income and estate-tax free death benefit can be a powerful tool when planning for the next generation.
Second, as long as the policy is properly owned, structured and funded, the cash value may, depending on the product, grow tax-deferred. Clients can choose to have their premiums allocated to selected investment portfolios using a variable universal life policy. Or those that favor guarantees can look to whole life, which offers guaranteed cash value accumulation as well as the potential for dividends.
Third, again as long as the policy is properly owned, structured and funded, the cash value can be accessed through tax-free loans and withdrawals. This is money that can be used to supplement retirement income, if needed, to fund college education, or for any other purpose.
Finally, cash value life insurance can be a flexible asset in a client’s overall financial portfolio. As long as the policy is not a Modified Endowment Contract (or MEC), there are no limits to contributions based on income. This can be essential for clients who have exhausted their contribution limits to 401(k)s, IRAs or other qualified retirement plans
In addition, distributions can be more flexible than other assets. What about when a client’s income needs are earlier than usual? What if a client plans to retire prior to age 59 ½? Or money is needed for a child’s college education? IRAs and other qualified plans may have restrictions or penalties when withdrawing before 59 ½. In these situations, life insurance can bridge the gap and provide income when it doesn't make sense to withdraw from qualified plans. As always, loans and withdrawals will decrease the cash value and death benefit.
Loans and withdrawals will decrease the cash value and death benefit. Distributions are generally treated first as tax-free recovery of basis and then as taxable income, assuming the policy is not a Modified Endowment Contract (MEC). However, different rules apply in the first fifteen policy years, when distributions accompanied by benefit reductions may be taxable prior to basis recovery. Non-MEC loans are generally not subject to tax but may be taxable when the policy lapses, is surrendered, exchanged or otherwise terminated. In the case of a MEC, loans and withdrawals are taxable to the extent of policy gain and a 10% penalty may apply if taken prior to age 59½. Always confirm the status of a particular loan or withdrawal with a qualified tax advisor. Cash value accumulation may not be guaranteed depending on the type of product selected. Investments in variable life insurance are subject to market risk, including loss of principal.
For Producer or Broker Dealer Use Only. Not for Public Distribution.

7. Tax Diversification — Tax Control Triangle
Let’s take a look at where clients are investing their dollars. Generally, assets fall into three categories: Taxable, Tax-Deferred and Tax-Favored
First – Taxable – Cash, CDs, checking, non-qualified brokerage accounts, etc… these are after-tax contributions where any earnings over $10, we get taxed on in the form of a 1099 every single year. This bucket is utilized for its high liquidity and it’s what I call our 1-to-3 or 1-to-5 year money. It is generally not made for retirement, as you do not get compounding tax-deferral.
Second – Tax Deferral – 401(k), 403(b), traditional IRA’s, SEP/SIMPLE’s, 457’s, KEOGHS…any qualified plan. It is tax-deductible contributions today, grows tax-deferred for retirement, but it is 100% taxable in retirement.
Now…I’m not saying don’t invest here and I’m not trying to say it’s not a good choice. Just so you know everything involving investing in life insurance is a supplement to, not an alternative to investing in qualified plans! I hope everyone here and our clients are maxing out these plans. This should be a discussion with these clients who are at the threshold and need to fill their retirement planning gap. It is a supplement to…NOT an alternative of investing in qualified plans.
Third – Tax-Favored. This bucket includes three simple vehicles– Roth IRA, municipal bonds and cash value life insurance. Let’s take each one separately. Roth IRA – if we are talking to clients making north of $100/$150K a year, we are not discussing Roth IRA’s anyway; they carry income contribution limits and they carry contribution limits themselves. Municipal or “Muni” bonds – these are excellent planning tools – but they are used more often when moving into or in retirement because they are designed to give you an income today. So they are best used to give you immediate tax-free income NOT deferred tax-free income. Lastly, cash value life insurance offers death benefit protection and features after-tax contributions, tax-deferred growth and tax-free income through loans and withdrawals.
Now…this is what we call the tax control triangle…this is your fact finder…use it in every single appointment…whether it be on a cocktail napkin, white board or a legal pad – you should draw this every time.
At the end of what I just walked through with you – advisors or producers should ask, “Mr. & Mrs. Client – where and how are you invested? Let’s go through each one…what do you have in cash, what do you have in checking, CDs…etc…?”
What you are going to find out is that for the most part they are going have very little (maybe 20-30%) in the taxable/liquid bucket, the majority (maybe 60-70%) in the qualified tax-deductible bucket and very little (maybe 0-10%) in the tax-favored bucket. I find they often have a small Roth IRA or Muni-bond or maybe even an old whole life contract that their parents or someone bought for them a long time ago.
What they will start to see is that while they understand market diversification is very important, the question to ask them is, “How do you feel from a tax diversification perspective? Given that taxes may go up in the future, how do you feel when you move into the distribution phase, knowing that a lot of your funds will fall into the taxable category?”
This is not a story of me telling you to put all your client’s money in cash value life insurance, it is a story of how we help clients to find a balance. Focusing on clients’ income in the future will help to make sure they have diversified their retirement income from a tax perspective.
1 Distributions from a life insurance policy through withdrawals of certain policy values (up to cost basis) and loans are generally not taxed as income provided you follow certain premium limits which prevent your policy from becoming a Modified Endowment Contract (MEC). Distributions taken during the first fifteen years may be subject to tax. Loans and withdrawals will generally reduce the cash value available and the death benefit payable. If policy loans are taken, there may be income tax consequences if you permit the policy to lapse or if the policy is surrendered or exchanged.
2 Traditional IRA contributions may be deducted if certain criteria are met.
3 Assuming the funds have been held in the account for at least five years and owner has reached age 59½ at the time withdrawals are taken.
4 Municipal bond interest is generally tax-free for regular federal income tax purposes.
For Producer or Broker Dealer Use Only. Not for Public Distribution.

8. Flexible Trust Design Spousal Lifetime Access Trust
Transfer assets and allow the future appreciation and gift to be transferred free from estate taxes
Provide a source for emergency assets for your client’s spouse
Accumulate cash value on a tax-favored basis
Insurance options to consider
Single life on donor spouse
Survivorship policies
Cash Value
For Producer or Broker Dealer Use Only. Not for Public Distribution.

9. Product Choice Supplemental Income Strategy
Using Guarantee Advantage UL
Male, Age 50, Preferred, Non Smoker
Annual Distribution $321,112
IRR at Age 65: 3.85
Taxable Equivalent Yield on IRR: 6.37%
*Hypothetical Example Only
Illustrative Gain Analysis5
Assumed Age at Death: 85
Death Benefit in Assumed Year of Death: $14,179,305
Total Cash Received from Policy: $4,816,687
Total Policy Benefits: $18,995,992
Less Cumulative Premiums: $5,250,000
Net Gain in Assumed Year of Death: $13,745,992
5 These illustrative values are based on the life insurance policy presented here and are entirely hypothetical. No adjustment is made for lost use of funds. It is assumed that all funds received from the life insurance policy are free of income taxation. All numbers in this presentation are based on the non-guaranteed values and are not projection of future policy performance. Please see the basic illustration for greater detail, guaranteed values, as to the underlying assumptions and risks associated with life insurance policy. Also see the Assumptions and Important Information pages for other information about the values and concept presented here. Any changes to any of the assumptions can have a significant impact on every other number or value shown.
For Producer or Broker Dealer Use Only. Not for Public Distribution.

10. Product Choice Supplemental Income Strategy Using Promise Whole Life
Male, Age 50, Preferred, Non Smoker
Annual Distribution: $412,445
IRR at Age 65: 3.61
Taxable Equivalent Yield on IRR: 5.98%
*Hypothetical Example Only
Illustrative Gain Analysis5
Assumed Age at Death: 85
Death Benefit in Assumed Year of Death: $13,240,940
Total Cash Received from Policy: $6,186,675
Total Policy Benefits: $19,427,615
Less Cumulative Premiums: $5,250,000
Net Gain in Assumed Year of Death: $14,177,615
6 These illustrative values are based on the life insurance policy presented here and are entirely hypothetical. No adjustment is made for lost use of funds. It is assumed that all funds received from the life insurance policy are free of income taxation. All numbers in this presentation are based on the non-guaranteed values and are not projection of future policy performance. Please see the basic illustration for greater detail, guaranteed values, as to the underlying assumptions and risks associated with life insurance policy. Also see the Assumptions and Important Information pages for other information about the values and concept presented here. Any changes to any of the assumptions can have a significant impact on every other number or value shown.
For Producer or Broker Dealer Use Only. Not for Public Distribution.

11. Product Choice Supplemental Income Strategy Using Equity Advantage VUL
Male, Age 50, Preferred, Non Smoker
Annual Distribution: $420,067
IRR at Age 65: 4.21
Taxable Equivalent Yield on IRR: 6.97%
*Hypothetical Example Only
Illustrative Gain Analysis5
Assumed Age at Death: 85
Death Benefit in Assumed Year of Death: $18,037,617
Total Cash Received from Policy: $6,301,006
Total Policy Benefits: $24,338,623
Less Cumulative Premiums: $5,250,000
Net Gain in Assumed Year of Death: $19,088,623
6 These illustrative values are based on the life insurance policy presented here and are entirely hypothetical. No adjustment is made for lost use of funds. It is assumed that all funds received from the life insurance policy are free of income taxation. All numbers in this presentation are based on the non-guaranteed values and are not projection of future policy performance. Please see the basic illustration for greater detail, guaranteed values, as to the underlying assumptions and risks associated with life insurance policy. Also see the Assumptions and Important Information pages for other information about the values and concept presented here. Any changes to any of the assumptions can have a significant impact on every other number or value shown.
For Producer or Broker Dealer Use Only. Not for Public Distribution.

12. Male, Age 50, Preferred Nonsmoker
Product Choice
Summary Comparison
Male, Age 50, Preferred Nonsmoker
Guarantee Advantage UL without CCR
Promise Whole Life
Equity Advantage Variable Universal Life
Initial Death Benefit
18,995,992
22,687,475
20,005,415
Annual Premium for 5 Years
1,050,000
Total Premium
5,250,000
Withdrawals from 66 to 85
321,112
412,445
420,067
IRR at Age 66
3.85%
3.61%
4.21%
Taxable Equivalent Yield
6.37%
5.98%
6.97%
Total Loans & Withdrawals
4,816,687
6,186,675
6,301,006
Current CV Year 10
6,741,2532
6,627,6152,3,4
6,899,1222
Guaranteed CV Year 10
1,576,682
7,192,8211
Current CV Year 20
8,645,2462
8,246,1422,3,4
9,029,2572
Guaranteed CV Year 20
12,967,5811
Current Interest Crediting Rate
5.20%
N/A
7.00% Hypothetical Gross Rate
6.26% Hypothetical Net Rate
Dividend Interest Rate
5.25%
Commissionable Premium
Target – 203,560
Base – 420,000
Target – 376,984
Other Attributes
General Account
Flexible Premiums
Overloan Protection Rider5
Dividends Will be Paid If and When Declared by the Issuing Company
Guaranteed CV
Guaranteed Minimum Death Benefit Protection
No Investment Restrictions including Protected Growth Strategy Funds
1 Assumes Premiums are paid on time each year and no Loans or Withdrawals
2 Assumes Premiums are paid on time for 5 years and Loans and Withdrawals as specified
3 Assumes dividends are paid at current rate.
4 Dividends are not guaranteed.
5 Optional riders can be purchased for an additional charge. Age and state availability restrictions may apply.

13. Alternative Investments
Protective Growth Strategies
AVAILABLE THROUGH METLIFE’S EQUITY ADVANTAGE VARIABLE UNIVERSAL LIFE
Equity Advantage VUL from MetLife combines life insurance protection and an investment opportunity
in one product. In addition to the death benefi t, you have the opportunity to accumulate cash value
by choosing from among 70 professionally managed funding options.1 Included in our wide array of
funding options are seven Protected Growth Strategy Portfolios.
The Protected Growth Strategies seek to give you more consistent returns over time
by responsively managing market risk and identifying opportunities for
growth across global asset classes. These strategies:
• Can help build your policy values over the long term with more confi dence,
even when markets are risky
• Are designed to protect policy cash value from extreme market swings
• May not capture all the gains in an up market, but are designed to help
avoid big losses in a down market
For Producer or Broker Dealer Use Only. Not for Public Distribution.
4/14/2017 7:18 PM

14. Delivering on our Promises
For Producer or Broker Dealer Use Only. Not for Public Distribution.

15. Implementation Review strategic relationship Practice review
Schedule time for client meetings and discuss method of approaching client
Set client meeting to confirm data, identify problems/ solutions, initiate underwriting
Deliver presentation materials if required
Implement Solutions
Repeat Steps
For Producer or Broker Dealer Use Only. Not for Public Distribution.

16. MetLife Brand
MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers.
Founded in 1868, MetLife continues to build upon its long history of providing unique solutions for its customers by launching new and innovative products, expanding its role as a leader, and continuing to provide high quality financial solutions that are backed by a trusted, well-recognized brand name and strong financial performance
MetLife counts over 90 of the top one hundred FORTUNE 500® companies among its corporate clients and is the largest life insurer in the U.S. and Mexico.
Briefly it’s worth mentioning a little bit about the MetLife brand. In today’s environment, people will buy what they know and the MetLife brand is very well-known.
We have a strong media presence. One of America’s largest financial companies with roots back to 1863, MetLife is the nation’s largest life insurer providing financial products and services to over 90 of the Fortune 500 companies. MetLife also serves approximately one out of every eleven U.S. households. In today’s environment, a brand that is well known is very important for Financial Professionals and their clients.
* Source: MetLife.com/Investor Relations 2013
For Producer or Broker Dealer Use Only. Not for Public Distribution.

17. Life Insurance Products are:
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
MetLife, its agents and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.
Like most insurance policies, MetLife's policies contain charges, limitations, exclusions, termination provisions and terms for keeping them in force. Contact your financial representative for costs and complete details.
Guarantee Advantage Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E and in New York only by Metropolitan Life Insurance Company on Policy Form 1E NY. All product guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.
Life insurance products are issued by: MetLife Investors USA Insurance Company, Irvine, CA and in NY only by: Metropolitan Life Insurance Company, First MetLife Investors Insurance Company, New York, NY
Life Insurance Products are:
• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency
• Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value
Thank you for your participation.
Life insurance products are issued by:
MetLife Investors USA Insurance Company
5 Park Plaza, Suite 1900
Irvine, CA 92614
And in NY only by:
Metropolitan Life Insurance Company
First MetLife Investors Insurance Company Park Avenue
New York, NY 10166
metlife.com
L [exp0214]
© 2013 METLIFE INC. PEANUTS © 2013 Peanuts Worldwide
For Producer or Broker Dealer Use Only. Not for Public Distribution.